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Necessary margin

Necessary margin

Necessary margin is guaranteed financial security required by the Dealer to maintain all open trade positions. This requirement is necessary for trading process. In order to maintain all open positions, the trader must first have on trading account a sufficient amount required to open his position. The size of the required margin varies depending on the value of leverage used by the trader. So, if the leverage of 1 to 100, the required margin will be equal to one percent of the volume of executed orders. In the case of leverage 1 to 50, the margin will be equal to two percent and so on. This means if a broker can use the leverage of 1 to 100, in this case for transaction must be available a sum of money, less the amount of the current transaction is a hundred times.

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